Housing Authority Asks To Sell Property To Pay For Highrise

The Orlando Housing Authority is trying to work out a plan that would allow it to sell valuable land on Bumby Avenue to pay for a highrise housing project there.

If approved, the buildings would replace the current development, which consists of former non-commissioned military quarters built in 1941.

That 100-unit project was deeded to the housing authority in 1953.

The deal, however, hinges on getting Congress to approve an exception to the deed, said Ray McDaniell, executive director of the authority.

Under the Lanham Act, the federal government deeded similar World War II projects to about 100 other housing authorities in the nation. The deed runs to 1993 on the condition that if any land is sold, the proceeds go to the federal government.

The U.S. Department of Housing and Urban Development recently repeated that position in a letter to McDaniell. HUD officials said they would have to study the proposal further before recommending support.

Authority board member Donovan Dean, an Orlando architect, gave details of the proposal at the board meeting last week.

Dean suggested selling about 4 of the 17 acres on Bumby for commercial use. He estimated that part of the land is worth about $3 million. The entire 17 acres would be worth about $9.9 million, Dean said. His plan calls for two buildings, seven to 10 stories tall, to replace the World War II housing. He said the buildings would have 500 units to replace the current 100 one-story units.

In other business, the authority learned that HUD cut its $1.2 million budget for operating expenditures by about $230,000. The budget covers fiscal year 1986, which began April 1.

McDaniell said the cut came from HUD's formula for subsidy payments, which is based on the authority's investments in the previous year. HUD cut this year's budget because the authority made more money than expected in fiscal 1985, he said.

One of the items the authority is considering dropping from its budget is $65,000 for new gas furnaces. That money would cover the cost and installation of about 140 furnaces.

The commission had expected to replace all 1,086 gas space heaters with gas furnaces this year. The move was prompted in part by the death of a housing authority tenant in December 1984. McDaniell said furnaces will be installed as scheduled. He said other funds might be freed to cover the cost of all 1,086 gas furnaces by November or December.